Is Theory Investing In Young Labels?

Overheard in an elevator last night:
A young designer (we won't mention your name, though we know it), babbling to a friend about how most investment banks won't put money into a fashion label until it's made $10 million.
The exception, she said, was Theory, whose president, Andrew Rosen, is meeting with emerging designers, she said, to invest in smaller brands, she said.
The only catch?
If your label is successful, Theory will always get a percentage of your sales - she said.
It's a cool story if it's true, but if you're silly enough to talk loudly in a crowded elevator about your secret business meetings, maybe you're also silly enough to get your facts wrong...

If it's hard for you to imagine Olivier Theyskens--he of the Victorian goth gown--designing for Theory, you're not the only one.
But whether or not we get it, the former Rochas and Nina Ricci designer will be creating a capsule collection for the contemporary work wear brand, at least according to WWD.
While it might be aesthetically confusing, the collaboration makes sense from a strategic point of view.